Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Computation Model of the Quantity Supplied to Optimize Inventory Costs for Fast Fashion Industry

패스트 패션의 재고비용 최적화를 위한 상품공급 물량 산정 모델

  • 박현성 (한양대학교 e-Business 경영학과) ;
  • 박광호 (한양대학교 경상대학 경영학부) ;
  • 김태영 (동양미래대학 경영학부)
  • Received : 2011.11.09
  • Accepted : 2011.11.28
  • Published : 2012.03.31
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Abstract

This paper proposes a computation model of the quantity supplied to optimize inventory costs for the fast fashion. The model is based on a forecasting, a store and production capacity, an assortment planning and quick response model for fast fashion retailers, respectively. It is critical to develop a standardized business process and mathematical model to respond market trends and customer requirements in the fast fashion industry. Thus, we define a product supply model that consists of forecasting, assortment plan, store capacity plan based on the visual merchandising, and production capacity plan considering quick response of the fast fashion retailers. For the forecasting, the decomposition method and multiple regression model are applied. In order to optimize inventory costs. A heuristic algorithm for the quantity supplied is designed based on the assortment plan, store capacity plan and production capacity plan. It is shown that the heuristic algorithm produces a feasible solution which outperforms the average inventory cost of a global fast fashion company.

Keywords

References

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